THE collapse of West Yorkshire manufacturer Carrington Wire in 2010 has, five years later, led to a significant ban for its sole director.
Richard Williams had bought the company for £1 from Russian company Severstal, who had failed to make the wire manufacturer profitable during its four years of ownership. Elland-based Carrington Wire, which was founded in 1924, closed with the loss of 80 jobs.
Mr Williams has now been banned for 12 years, while an £8.5m settlement was agreed with Severstal and OAO Severstal-Metiz by the Pensions Regulator in January.
Severstal had guaranteed the Carrington Wire defined benefit pension scheme, but Mr Williams’ vehicle, Gillico, did not.
Cheryl Lambert, chief investigator at the Insolvency Service, said: “This was a disgraceful conspiracy to abandon a pension scheme and this disqualification shows that misuse of the privileges of limited liability trading are not tolerated.”
Mr Williams, who became a director of Carrington Wire when the deal went through, knew the company would not be able to settle the multi-million pound scheme deficiency, the Insolvency Service investigation found.
“Mr Williams was the facilitator for a foreign owned business to abandon British workers and pensioners,” she added.
“He consciously and deliberately ignored the interests and enquiries of others, withholding information and also doing the opposite of what was advised and required via the Pension regulator.
“He ultimately personally benefited through the payment of moneys by the Russian company to Gillico which he then diverted to his own pocket rather than ensuring it reached its supposed ultimate destination.”
Gillico had received almost £400,000 from Severstal as a “working capital adjustment” payment, but that money went to Mr Williams personally, rather than the company, and he used it to pay off personal debts and make payments to his estranged wife.
Click here to sign up to receive our new South West business news...
